ABSTRACT
This chapter analyses the impact of oil revenues on the Emirates’ economic development and discusses oil revenue and economic development, some aspects of the Emirates’ economic development and some problems and obstacles to economic development. The oil revenue has three clearly identifiable characteristics. These are: the greater part of it is in the nature of an economic rent; it is collected in return for depleting irreplaceable natural resources; and it is the principal national benefit derived from an export-oriented industry. The difference between the production cost of crude oil and its price is very high. Economic development is taken to mean an increase in real per capita income associated with structural changes such as to produce self-sustaining growth forces in the economy. One of the niost important effects of oil revenues on the Emirates has been their investment in basic infrastructure and public utilities projects.
